02-14-2005 EDA MIN - Laserfiche WebLink

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Economic Development AuthoriryMinutes February 14, 2005 Page 3 Commissioner Moon asked if this site would be easier to develop than the Cargill site. Mr. Maurer stated yes, that it would be much easier from a grading standpoint to get buildable sites. Consider Renewal of Business Incubator Lease Ms. Steinmetz noted that the lease with Larry Hickman of the Business Incubator budding will expire April 15, 2005. Staff requests that the EDA consider renewing the lease so that prospective tenants may consider sub-leasing space in the building for a period of at least one year. Ms. Steinmetz provided history of the Business Incubator lease. She noted that K-Netica and Lap2 Technology Corporation are the current tenants. Ms. Steinmetz stated that finding a new building with city sewer and water has been discussed. She then reviewed the terms of the proposed lease renewal with Mr. Hickman. Cotmissioner Dwyer stated that before the next lease term comes up, he would be in favor of looking at a broader base for tenants. Currently, prospective tenants are required to be incorporated and have a stock option available, which elimurates the sole proprietor who may have no intention of going public. Chair Gongoll added that a tenant may meet the high tech requirement, but cannot meet those items mentioned by Commissioner Dwyer. Discussion followed regarding the Incubator requirements. Ms. Mehelich suggested that the EDA may wish to discuss this issue with the Business Incubator Advisory Committee. MOTION BY COMMISSIONER DWYER AND SECONDED BY COMMISSIONER TVEITE TO RENEW THE BUSINESS INCUBATOR LEASE WITH MR. LARRY HICKMAN FOR UP TO 2 YEARS FOR 6,569 SQUARE FEET (3 SUITES) AT LEASE RATE OF $2.10/SF AND A MAINTENANCE RATE OF $0.09/SF. MOTION CARRIED 7-0. 8. Consider Business Incubator Tenant Lease Extension: K-Netica Ms. Steinmetz provided background information regarding K-Netica's lease of 2,267 square feet of Incubator space since May of 2002. She noted that the EDA has granted three sublease extensions to K-Netica and that in addition to stock offering, the company has made timely cash rent payments. K-Netica has requested a fourth sublease extension for six months. Joe Roushar, Chief Technology Officer for K-Netica -Provided information on the company's current status and growth. He noted that they have recently closed a deal with Blue Cross for a pilot program of software. Mr. Roushar stated that they hope to find a larger space at the end of the lease period in August 2005. MOTION BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER MOTIN TO GRANT ASIX-MONTH SUBLEASE EXTENSION TO K-NETICA EFFECTIVE FEBRUARY 21, 2005 -AUGUST 20, 2005 AT THE FOLLOWING CASH/STOCK RENT RATE: $4 PER SQUARE FOOT CASH RENT ($755.66 PER MONTH); $7 PER SQUARE FOOT STOCK VALUE (DIVIDED AMONG BUILDING OWNER, INCUBATOR CONSULTANT &EDA; FOR A TOTAL OF $11 PER SQUARE FOOT TOTAL RENT VALUE. MOTION CARRIED 7-0.